《高级微观经济学Advanced Microeconomics》课件l.ppt

for Chu Kechen Honors College for Chu Kechen Honors College Advanced Microeconomics(lecture 1: production theory I) lecture 1 for Chu Kechen Honors College Summary textbook: Varian, Hal R., 1992, Microeconomics Analysis, 3rd ed. Mas-Colell, A., M. Whinston, and J. Green, 1995, Microeconomics Theory. assignments: twice a week; Team work; Deliver on the class. examinations: Mid-term: by the assignments; Final-term: 80% of the questions coming from the assignments. lecture 1 for Chu Kechen Honors College The Basic Framework of Microeconomics Technology Preference Choice (production) Choice (purchase) Supply Demand Market Equilibrium lecture 1 for Chu Kechen Honors College Technology Contain: “production (possibilities) set” (PS) and “production function”; Properties of the “PS”; Technical rate of substitution; Returns to scale. lecture 1 for Chu Kechen Honors College 1. Production set Production plan (production vector, or input-output vector): Production set Y: all technological feasible y. Restricted production set Y (z): Some of yi in y are restricted on z . Short-run production set. lecture 1 for Chu Kechen Honors College 1. Production set Input requirement set: All yi in y are negative, let them be –x (then x is positive), and the rest yj to be q . So, and , and the input requirement set is : lecture 1 for Chu Kechen Honors College 1. Production set Transformation function: and satisfied if and only if y is technologically efficient, then y2 y1 lecture 1 for Chu Kechen Honors College 1.Production set Production function: If O = 1,and I = n - 1, then: means: Isoquant: Question1: calculate the PS, RS, TF, PF, Isoquant of Cobb-Douglas technology and Leontief technology. lecture 1 for Chu Kechen Honors College 2.Properties of PS. Y is nonempty: we have something to do. Y is close: Y contain it’s boundary, No free lunch: See the fig. Free disposal: See the fig. lecture 1 for Chu Kechen Honors College 2.Propert